Archive for the ‘Uncategorized’ Category

 

China has been actively expanding its influence to the Middle East, and engaging war-torn Syria as part of its signature Belt and Road Initiative (BRI) has been a case in point.

On November 24, Chinese Foreign Minister Wang Yi met with Political and Media Advisor to the Syrian President Bouthaina Shaaban in Beijing. During the meeting, Wang offered to support Syria’s reconstruction.

In early November, Syrian government forces and their pro-government allies announced that they won another victory over Islamic State of Iraq and Syria (ISIS) militants and were in full control of Deir el-Zour, the largest city in eastern Syria. The Syrian government led by President Bashar al-Assad appears to be winning the war against ISIS for now.

According to Chinese foreign ministry, during his meeting with Bouthaina Shaaban, Wang proposed three focal points — counter-terrorism, dialogue and reconstruction –for solving the Syrian issue as “the situation in Syria is turning into a new stage.” He emphasized that anti-terrorism as the foundation, dialogue as the way out and reconstruction as the guarantee.

Regarding “dialogue,” Wang claimed that it is the “only way out” for solving the Syrian issue. “In this process, we must safeguard the sovereignty, independence and territorial integrity of Syria and maintain the core status of the Syrian people in the political settlement process,” Wang said.

Wang also expressed willingness to help with Syria’s reconstruction. He said that “only by advancing reconstruction steadily can we give the Syrian people hope and provide guarantee for the long-term peace and stability in Syria. ”

“The international community should attach importance to and actively support the reconstruction of Syria,” Wang added. “China will also make its own efforts to this end.”

Yet, this stance seems to be at odds with that of many Western and Arab countries.

In September, Canada, Denmark, Egypt, European Union, France, Germany, Italy, Jordan, Netherlands, Norway, Qatar, Saudi Arabia, Sweden, Turkey, United Arab Emirates, the United Kingdom, and the United States issued a joint statement, stressing that “Recovery and reconstruction support for Syria hinges on a credible political process leading to a genuine political transition that can be supported by a majority of the Syrian people.”

Thus, China, together with Russia and Iran, has become the major potential helper with reconstruction for current Syrian government.

At the regular press briefing on November 29, Chinese foreign ministry spokesperson Geng Shuang explained China’s motive for actively engaging Syria and other Middle East countries recently. He said:

Too many people in the Middle East are suffering at the brutal hands of terrorists…We support countries in the region in exploring a development path suited to their national conditions and are ready to share governance experience and jointly build the Belt and Road and promote peace and stability through common development.

On November 21, China just delivered 1,000 tons of rice to Syria as part of its food aid plan under the BRI. According to China’s state media, China has already signed three agreements with the Syrian government to provide humanitarian aid to Syria worth over $40 million in the first half of 2017.

In September, while attending the United Nations General Assembly in New York, Wang also directly asked Syrian Deputy Prime Minister and Foreign Minister Walid Muallem to join China’s BRI, since “Syria is an important node in the ancient Silk Road and that the ‘Belt and Road’ construction can serve as an important opportunity for bilateral cooperation in future. ”

In response, Syria has shown enthusiasm to attract Chinese cash, too. For instance, early in July, the China-Arab Exchange Association and the Syrian Embassy in Beijing held a special event, inviting 1,000 representatives of Chinese companies to invest on Syria’s reconstruction. During the event, Syrian Ambassador in Beijing Imad Mustafa said that Chinese companies are expected to play a big role in the future reconstruction phase and the Syrian government will give top priority to Chinese companies in investment and reconstruction opportunities.

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African American Social Experiment Gone Wrong! Part 2

 

Will the rise of China mean the fall of America? In a word, yes. Although decline might be more accurate.

Why do I think this? Because China is about to launch the PetroYuan and when it does the demand for dollars and for dollar denominated debt will shrink. When it does, I question whether the world will be so sanguine about the level of debt that America carries. If that happens then the value of the dollar is in question.

At the moment no matter what level of debt America carries, other countries need dollars. Dollars to pay for oil, since oil is traded in dollars. Dollars for their financial system so their banks can settle contracts for goods and services traded in dollars.

But over the last few years China has been systematically putting in place everything it needs to launch the Yuan as not only a rival to the dollar in trading and settling oil contracts but as a rival to the dollar as the world’s reserve currency. At the moment the only rival to the dollar is the Euro. I think it fair to say the relationship between the two currencies and their issuing powers, has been… ‘delicate’. The news that Sadam Hussein was going to start trading his oil in Euros came just a few months before America and its lap dog GB, decided Sadam was a threat to world peace and went to war with him. Something similar happened to Colonel Qaddafi.

Under Qaddafi Libya’s currency was backed by the country’s large holdings of gold and silver. This had allowed Qaddafi to finance, for example, the entire construction of the Great Man Made River without going to Western banks for a single loan. Libya was debt free and owned its own resources and infrastructure. Obviously a very unsatisfactory state of affairs for any third world country to get ideas so far above their station. Worse, he had a very public plan which he had laid before the Pan African Congress, to create a pan African currency backed by gold and silver to be launched by 2023. It was not too long before Hilary Clinton arrived in a freshly bombed Libya and crowed to CBS, “We came, we saw, he died.” Charming woman. I was only surprised she didn’t say “Mission accomplished.”

Libya and Iraq were small enough, that their pretensions to threaten the hegemony of the dollar and have the jumped up arrogance to think they could trade their own resources in their own currency or a currency of their choice, could be dealt with by shock, awe and death. I think China might not be so easily dealt with.

China’s plans for the replacement of the dollar and the positioning of their own currency are very like Libya’s. China too has had the idea to back its new settlement and perhaps one day its reserve currency, with gold. And China is not alone. Russia has been a part of the BRIC group with an interest in the plan. Russia, like China has been a very large buyer of gold.

 

As reported just a few weeks ago by the Irish Independent,

…the Bank of Russia has more than doubled the pace of gold purchases, bringing the share of bullion in its international reserves to the highest of Mr Putin’s 17 years in power, according to World Gold Council data.

In the second quarter alone, it accounted for 38pc of all gold purchased by central banks.

The article goes on to explain how purchasing gold has meant that Russia has not had to buy foreign currencies. For foreign currencies think Dollars.

The gold rush is allowing the Bank of Russia to continue growing its reserves while abstaining from purchases of foreign currency for more than two years.

China and Russia have very large holdings of gold between them. China actually produces 12% of the world’s gold and keeps much if not most of what it produces. The new Petro Yuan will be backed by Gold, Something the IMF decades ago, said no paper currency should have. A clear break with the Bretton Woods Dollar-world agreement.

Who will use this new currency? Over the past few years a network of bilateral agreements has been created around China and Russia. Back in 2012, in an article called A new Reserve currency to challenge the dollar – What’s really going on in The Straits of Hormuz, I pointed out that not only had China and Russia agreed to bypass the dollar and trade direct in their own currencies but that,

the India Times reported that India was talking to Iran about moving out of dollar settlements so as to be able to buy Iranian oil despite a US embargo. India said it was discussing settling in Gold. Remember, India has just signed a settlement agreement with China to use the Yuan.

Remember also, Russia recently eclipsed Saudi as the number one supplier of China’s oil. And if I remember correctly Angola was number two. Promoting perhaps the recent state visit this year of Saudi’s King Salman to see Mr Putin. As The Guardian put it,

 

Saudi king’s visit to Russia heralds shift in global power structure

King Salman agrees new areas of cooperation with Vladimir Putin on first official trip by Saudi monarch to Moscow

In addition Japan and China have agreed to trade in Yuan, by-passing the dollar, as has Iran. They are now trading their oil in Yuan or euros, but not the dollar. Ever wondered why Iran is ‘the axis of evil? It’s because they don’t use the dollar.

Then came the news in 2015 that Qatar had opened the first and so far only financial centre in the Middle East, for trading and clearing oil, gas and anything else, in Yuan. China’s ICBC is the central banking concern in the hub, allowing any Middle Eastern country to trade oil and gas and settle in Yuan. In the previous few years China’s trade with Qatar had tripled. And now, guess what? Qatar has been declared by the US to be a sponsor of terrorism and US allies in the gulf , led by Saudi, have begun to blockade Qatar’s trade. Hmm. Any pattern emerging?

The problem for the US is how much debt is too much for any country or business? Clearly it is not any magic figure or particular debt to GDP ratio. America and China carry huge debts and no one has balked…yet. How much debt you can carry is a function of debt to the estimated future productive capacity of the country in question. That creates the demand for its currency and the demand for the currency creates a market and demand for debt denominated in that currency.

At the moment the US can carry a huge debt load because everyone needs dollars to trade oil. And China can carry a huge debt because everyone needs yuan to buy the goods whose production was off-shored to China by our globalist leadership.

But what happens to demand for Dollars and dollar debt when, not if, oil starts to be traded less and less in dollars? I suggest the world’s appetite will diminish quite quickly. As it does so, the world will start to see US debt in a different light. While the opposite will happen to China. And this is what interests me and makes me think China has a plan.

At the moment China also has a very large debt load. I have argued that the Central Chinese authorities have not got the control they would like to have over the growth of that debt. Of course I have no inside information. But the on again/ off again attempts of the Chinese central authorities to deflate its housing-debt bubble and its quite out-of-control shadow banking lending suggests, to me at least, that the central authorities have not and can not control the level of debt being accumulated by provincial governments, their off-book, arm’s length financial vehicles, regional banks, property developers and the vast, largely unregulated trade in wealth management vehicles.

Chinese debt already overflowed once back in the 90’s. Four companies were created to take the debt off the banks’ books and trade it away. Decades later these companies still exist and still have the bad debts from the 90’s hanging around. You will see headlines telling you how those companies have been doing well, making money. Suggesting their trade in bad chinese debt has been going well. The reality, if you dig a little deeper, is that those companies lobbied for and were given permission to engage in ‘proper’ banking activities. Which meant they began to make their own loans – to property developers. As the property bubble continued to inflate over the last decade and a half they have ridden it and that, not trading the old bad-debt, is why they have made a profit. But now those ‘bad’ banks, have themselves started to find some of their own loans going bad. In any hard-landing or financial paroxysm the ‘bad-banks’ will need to be rescued by a new bad banks. Bad banks for bad banks is not really a solution.

I think the Chinese authorities can see this. It doesn’t take a genius after all. What can they do? Well if you already have a huge debt problem and know many of them are going to go bad and will do so overnight in the event of another global banking crisis, and know you are not able to reign it all in, then a very tempting alternative would be to get the world to agree that you can carry more debt – a lot more. And what could help convince the world? Well if your currency could become far more sought after, that would be peachy.

And so I think the long standing Chinese goal of making the yuan

an important international currency which China, and Hong Kong in particular, have been working towards for years, has now taken on a far greater import and urgency. I think the Chinese central government’s best way of avoiding a politically disastrous domestic debt implosion is to get the Yuan to be used as a settlement currency for oil and not long after that to become a de facto rival to the dollar as the world’s reserve currency.

Recently I argued at length with a military analyst who disagreed that China would risk such a break with America. Too dangerous he felt. China, he pointed out has such huge holdings of American debt. He argued that the Chinese would prefer to work alongside the dollar. I feel that even if the Chinese would prefer to ‘work alongside’ the dollar, this will prove very difficult if not impossible. Once a flow of countries and trade moves away from the dollar there will be a momentum the Chinese will not be in control of. Cooperation between dollar and Yuan as clearing and reserve currency, especially for oil, will be like trying to dock two super-tankers in a high sea. In theory possible. In practice – not going to work.

As for Chinese holdings of US debt – I think the advantages of avoiding a domestic debt implosion and projecting the Yuan to world centre stage, will outweigh the losses. I also think, If I were the Chinese, I would imagine a scenario where the dollar does begin to look vulnerable. Its value begins to be questioned, nations holding dollars and dollar debt will feel America’s profligate indebtedness is a global danger. They will blame America. How wonderful then, for China to arrive and say to a worried world, on the edge of a huge crisis, “Fear not, we have thought ahead and can offer you the use of a new currency – one backed by GOLD not paper debts. We are here to save you. To offer a ride on a sound ship as an alternative to the rotten and leaking ship you have been riding on.” China will be able to position their rise not as an aggressive act, not as trying to destabilise the world, but as trying to save it, from the collapse of an internally divided, corrupt, aggressive and indebted America.

America’s decline will be both financial and political. Financial due to the recalibration of what the world thinks of America’s debt load, and therefore their confidence in and need for the dollar. Political, because America

has got used to being able to enforce its foreign policy through sanctions and embargoes. But once oil and other goods and the nations trading in them, no longer need the dollar for their trade, and do not have to use US clearing or custodial banks, then this power evaporates.

Try to imagine the shift in power when Wall Street’s banks are no longer guaranteed top position as the world’s custodial banks and Manhattan’s Southern District Court (Wall Street’s court) is no longer in a position to dictate to whole nations via decisions upon Wall Street Custodial banks, what debts those nations and their custodial banks must pay and to whom. The whole edifice of Bilateral Investment Treaties and the trade agreements they sit inside, depends for enforcement upon the US banks being the custodial banks and the Southern District court’s rulings being able to tell those banks what they must do. Take that power away, which will happen if the dollar is no longer pre-emininent, and America will no longer be able to enforce its foreign policy or world view via economic sanction.

I think the main US banks will be positioning themselves to try to bridge this decline by having a major presence in Hong Kong. They are all already there but will be working to be part of the new Yuan-world of trade and clearing.

Of course this is speculation. But it seems to me the underlying evidence of the previous decade makes it worth thinking about.

If I am in any way correct then I think other things follow.

I think the House of Saud knows it’s future is in question. I have written a lot about how I see Qatar rising to rival Saudi. Qatar not Saudi has the Yuan clearing house. Saudi is late to the party. Can Saudi risk being seen to move away from its

traditional ally, America? If it does, too quickly, and signs yuan trade deals it risks falling as soon as Americal turns its back. If it doesn’t move quickly enough it risks being completely eclipsed by Qatar, having to go to Qatar cap in hand to trade its oil with Russia and China.

I see the political changes within the House of Saud as signs of the internal struggles to decide which way to go. I personally think the House of Saud will fall.

I also think the position of Israel under its present leadership is also very fragile. Israel needs Saudi. While they may seem to be on opposite sides, in many ways they are on the same side. If the House of Saud falls or changes allegiances from America to Russia/China then Israel will become even more isolated than it is. And of course if America is eclipsed and does enter a period of decline, then Israel will go with it.

If any of the above is near the mark, will it mean the end of America? Of course not. American’s will still work and sleep and raise their children like everyone else. But the pre-eminence of the dollar and American finance will decline as the stock of dollar denominated bonds and debt agreements expires, and with it the power and wealth of many of America’s elite. How that decline will sit alongside America’s still overwhelming military power I don’t know.

Of course what I have suggested above is merely speculation but personally I think another debt crisis will happen, because never ending QE and Central Bank debt buying cannot go one for ever, and what China does in the next few months could very well destabilise the whole unstable system. Many people will suffer and lives will be blighted. But I wonder if, when we all look back from a decade or a generation after, if we won’t think it lucky the crisis did finally come and the system we have been slaving under since 2007 as well as those who have forced it upon us for their own enrichment, were called to account.

It is difficult to accept that such historic changes could occur. But history has not ended despite what some have claimed.

Rumours of History’s end have been, in my opinion, greatly exaggerated. History is very much alive and happening to us, now. We are, as the Chinese saying goes, living in interesting times.

 

 

A scribbled note by Albert Einstein which described his theory on the key to happy living was sold at auction in Jerusalem for $1.56m.

According to The Telegraph, the winning bid for the note far exceeded the pre-auction estimate of between $5,000 and $8,000, according to the website of Winner’s auction house.

“It was an all-time record for an auction of a document in Israel,” Winner’s spokesman Meni Chadad told AFP…Bidding in person, online and by phone, started at $2,000. A flurry of offers pushed the price rapidly up for about 20 minutes until the final two potential buyers bid against each other by phone. Applause broke out in the room when the sale was announced.

The newspaper reports that Einstein was on a lecture tour of Japan in 1922 and had recently been awarded the Nobel prize. Einstein didn’t have cash to pay a tip to a bellboy in the Imperial Hotel in Tokyo, so he gave him two notes, predicting they would be worth more than a tip. He is reported have said.

“Maybe if you’re lucky those notes will become much more valuable than just a regular tip.”

The Telegraph continues, Einstein dedicated his life to science, but suggested in the notes that fulfilling a long-term ambition doesn’t necessarily guarantee happiness.

The note said.

“A quiet and modest life brings more joy than a pursuit of success bound with constant unrest.”

The anonymous buyer was from Europe.

The notes were sold by an anonymous Hamburg resident who commented “I am really happy that there are people out there who are still interested in science and history and timeless deliveries in a world which is developing so fast.”

On the second note was written “where there’s a will, there’s a way”. It sold for $240,000.

 

President Trump drops ugly truth on joining the military. Sends Democrats into frenzy. President Xi Jinping’s 19 congress meeting. Iran deal being reneged on JFK 30,000 documents possibly being declassified and conversations at while working.

By John W. Whitehead

“All governments suffer a recurring problem: Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible.”― Frank Herbert

Power corrupts.

Worse, as 19th-century historian Lord Acton concluded, absolute power corrupts absolutely.

It doesn’t matter whether you’re talking about a politician, an entertainment mogul, a corporate CEO or a police officer: give any one person (or government agency) too much power and allow him or her or it to believe that they are entitled, untouchable and will not be held accountable for their actions, and those powers will eventually be abused.

We’re seeing this dynamic play out every day in communities across America.

A cop shoots an unarmed citizen for no credible reason and gets away with it. A president employs executive orders to sidestep the Constitution and gets away with it. A government agency spies on its citizens’ communications and gets away with it. An entertainment mogul sexually harasses aspiring actresses and gets away with it. The U.S. military bombs a civilian hospital and a school and gets away with it.

Abuse of power—and the ambition-fueled hypocrisy and deliberate disregard for misconduct that make those abuses possible—works the same whether you’re talking about sexual harassment, government corruption, or the rule of law.

For instance, 20 years ago, I took up a sexual harassment lawsuit on behalf of a young woman—a state employee—who claimed that her boss, a politically powerful man, had arranged for her to meet him in a hotel room, where he then allegedly dropped his pants, propositioned her and invited her to perform oral sex on him.

Despite the fact that this man had a well-known reputation for womanizing and this woman was merely one in a long line of women who had accused the man of groping, propositioning, and pressuring them for sexual favors in the workplace, she was denounced as white trash and subjected to a massive smear campaign by the man’s wife, friends and colleagues (including the leading women’s rights organizations of the day), while he was given lucrative book deals and paid lavish sums for speaking engagements.

William Jefferson Clinton eventually agreed to settle the case and pay Paula Jones $850,000.

Here we are 20 years later and not much has changed.

We’re still shocked by sexual harassment in the workplace, the victims of these sexual predators are still being harassed and smeared, and those who stand to gain the most by overlooking wrongdoing (all across the political spectrum) are still turning a blind eye to misconduct when it’s politically expedient to do so.

This time, it’s Hollywood producer Harvey Weinstein—longtime Clinton associate and a powerhouse when it comes to raising money for Democrats—who is being accused of decades of sexual assaults, aggressively sexual overtures and harassment.

I won’t go into the nauseating details here. You can read them for yourself at the New York Times and the New Yorker.

Suffice it to say that it’s the same old story all over again: man rises to power, man abuses power abominably, man intimidates and threatens anyone who challenges him with retaliation or worse, and man gets away with it because of a culture of compliance in which no one speaks up because they don’t want to lose their job or their money or their place among the elite.

From what I’ve read, this was Hollywood’s worst-kept secret.

In other words, everyone who was anyone knew about it. They were either complicit in allowing the abuses to take place, turning a blind eye to them, or helping to cover them up.

It’s not just happening in Hollywood, however.

And it’s not just sexual predators that we have to worry about.

For every Harvey Weinstein (or Roger Ailes or Bill Cosby or Donald Trump) who eventually gets called out for his sexual misbehavior, there are hundreds—thousands—of others in the American police state who are getting away with murder—in many cases, literally—simply because they can.

The cop who shoots the unarmed citizen first and asks questions later might get put on paid leave for a while or take a job with another police department, but that’s just a slap on the wrist. The shootings and SWAT team raids and excessive use of force will continue, because the police unions and the politicians and the courts won’t do a thing to stop it. Case in point: The Justice Department will no longer attempt to police the police when it comes to official misconduct. Instead, it plans to give police agencies more money and authority to “fight” crime.

The war hawks who are making a profit by waging endless wars abroad, killing innocent civilians in hospitals and schools, and turning the American homeland into a domestic battlefield will continue to do so because neither the president nor the politicians will dare to challenge the military industrial complex. Case in point: Rather than scaling back on America’s endless wars, President Trump—like his predecessors—has continued to expand America’s military empire and its attempts to police the globe.

The National Security Agency that carries out warrantless surveillance on Americans’ internet and phone communications will continue to do so, because the government doesn’t want to relinquish any of its ill-gotten powers. Case in point: The USA Liberty Act, proposed as a way to “fix” all that’s wrong with domestic surveillance, will instead legitimize the government’s snooping powers.

Unless something changes in the way we deal with these ongoing, egregious abuses of power, the predators of the police state will continue to wreak havoc on our freedoms, our communities, and our lives.

Police officers will continue to shoot and kill unarmed citizens. Government agents—including local police—will continue to dress and act like soldiers on a battlefield.

Bloated government agencies will continue to fleece taxpayers while eroding our liberties. Government technicians will continue to spy on our emails and phone calls. Government contractors will continue to make a killing by waging endless wars abroad.

And powerful men (and women) will continue to abuse the powers of their office by treating those around them as underlings and second-class citizens who are unworthy of dignity and respect and undeserving of the legal rights and protections that should be afforded to all Americans.

As Dacher Keltner, professor of psychology at the at the University of California, Berkeley, observed in the Harvard Business Review, “While people usually gain power through traits and actions that advance the interests of others, such as empathy, collaboration, openness, fairness, and sharing; when they start to feel powerful or enjoy a position of privilege, those qualities begin to fade. The powerful are more likely than other people to engage in rude, selfish, and unethical behavior.”

After conducting a series of experiments into the phenomenon of how power corrupts, Keltner concluded: “Just the random assignment of power, and all kinds of mischief ensues, and people will become impulsive. They eat more resources than is their fair share. They take more money. People become more unethical. They think unethical behavior is okay if they engage in it. People are more likely to stereotype. They’re more likely to stop attending to other people carefully.”

Power corrupts. And absolute power corrupts absolutely.

However, it takes a culture of entitlement and a nation of compliant, willfully ignorant, politically divided citizens to provide the foundations of tyranny.

As researchers Joris Lammers and Adam Galinsky found, those in power not only tend to abuse that power but they also feel entitled to abuse it: “People with power that they think is justified break rules not only because they can get away with it, but also because they feel at some intuitive level that they are entitled to take what they want.”

That sense of entitlement and immunity from charges of wrongdoing dovetails with Richard Nixon’s belief that “when the President does it, that means that it is not illegal.”

For too long now, America has played politics with its principles and allowed the president and his colleagues to act in violation of the rule of law.

“We the people” are paying the price for it now.

Americans have allowed Congress, the White House and the Judiciary to wreak havoc with our freedoms. They have tolerated an oligarchy in which a powerful, elite group of wealthy donors is calling the shots. They have paid homage to patriotism while allowing the military industrial complex to spread death and destruction abroad. And they have turned a blind eye to all manner of wrongdoing when it was politically expedient.

This culture of compliance must stop.

The empowerment of petty tyrants and political gods must end.

For starters, let’s go back to the basics: the Declaration of Independence, the U.S. Constitution and the Bill of Rights.

Let’s recommit to abiding by the rule of law.

Here’s what the rule of law means in a nutshell: it means that everyone is treated the same under the law, everyone is held equally accountable to abiding by the law, and no one is given a free pass based on their politics, their connections, their wealth, their status or any other bright line test used to confer special treatment on the elite.

Let’s demand scrutiny and transparency at all levels of government, which in turn will lead to accountability.

We need to stop being victimized by these predators.

As I point out in my book Battlefield America: The War on the American People, I’m not just talking about the political predators in office, but the ones who are running the show behind the scenes—the shadow government—comprised of unelected government bureaucrats whose powers are unaffected by elections, unaltered by populist movements, and beyond the reach of the law.

There is no way to erase the scars left by the government’s greed for money and power, its disregard for human life, its corruption and graft, its pollution of the environment, its reliance on excessive force in order to ensure compliance, its covert activities, its illegal surveillance, and its blatant disdain for the rule of law.

“We the people”—men and women alike— have been victims of the police state for so long that not many Americans even remember what it is to be truly free anymore. Worse, few want to shoulder the responsibility that goes along with maintaining freedom.

Still, we must try.